Washington Mutual (WM) sold down in the afternoon, closing down almost 12% on the day. I haven’t seen any news to explain why, but I’m sure I will. If I’m missing something, feel free to let me know, as my head is a bit fuzzy from allergies today. I sure hope novice daytraders weren’t playing today, since this was yet another strange "up/down, wherever" type trading range. I think we will be trading a sideways market for the most part, and those aren’t real easy. There are way too many retail traders (and those who should know better) trading this market like it’s just business as usual. Their portfolio’s are reflecting some serious damage, and some haven’t been in positive territory all year.
I hope everyone fared well this week and are "awash in liquidity!" See you all later for the commentary.
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FYI Keefe Bruyette & Woods doubled its 2008 loss estimate for WAMU saying that if it were taken over, is is unlikely to be purchased for more than $10/share
Thank you!
This market is getting a bit boring. I was down a fraction on my UNG and FXI positions today, but fortunately caught a rocket this morning. I haven’t had a rocket in several months. I bought LDK Solar right at the open this morning and it shot up about $5. I don’t know what happened with LDK, but the timing was pretty fortunate. I moved my stop up to $1 below the close to lock in the profits. I am keeping my stops tight in this market. The solars have really been exploding over the past 3 weeks or so. I am not going to chase many of them at these levels, but I might dabble around if they pull back.
I hate sitting around in cash, but I don’t see many things other than the solars (and most of those are a bit extended) that excite me. Of course I LOVE the ags, but I missed a bunch of that move already and refuse to chase them. My new price target for POT is two “thousand” dollars per share.
Just as an FYI – WM CDS was considerably wider this afternoon also…traded up from 350 to 400 offered- still way off its mid March wides of 700 but something is moving around…